SAS Reports Record Second Quarter Production Results Producing 23,016 Ounces of Gold

TORONTO, July 10, 2012 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") reports second quarter ("Q2 2012") production of 23,016 ounces of gold from its Holt, Holloway and Hislop mines in the Timmins mining district, north-eastern Ontario, Canada.

"We are pleased to report another record quarter of production at SAS, on our way to achieving our annual production target," said Jacques Perron, President and CEO of SAS. "Production increased steadily from the first quarter and was in line with our expectations. As underground development progresses at Holt and Holloway, we will open new mining areas that will provide us with the ability to continue to increase our consolidated gold production."

Q2 2012 Production Results

  Tonnes
Milled
 Head Grade 
(g/t Au)
Average Mill
 Recovery Rate 
 Gold Produced 
(ounces)
Holt 78,429 4.71 94.2% 11,193
Holloway 53,169 3.80 91.2% 5,923
Hislop 97,183 2.21 85.6% 5,899
Q2 2012 production 228,781 3.44 91.1% 23,016
2012 Year-to-date Production   438,530   3.43 91.0% 44,034

Holt Mine ("Holt")
Holt produced 11,193 ounces of gold derived largely from Zone 4 from the 925m Level and the 1075m Level mining areas as well as the C-104 remnant mining area. Total development for Q2 2012 reached nearly 400 metres per month, which was a 16% increase over the previous quarter in total lateral development driven. The head grade mined during Q2 2012 was slightly above the Company's expectation and recovery was at the planned level of 94.2%.

Holloway Mine ("Holloway")
Holloway produced 5,923 ounces of gold from the Smoke Deep Zone. The recovery rate of 91.2% exceeded the Company's forecast.  Development crews continue to advance the footwall ramp and sublevel development. All required infrastructure for the mining of this zone is now established other than the ongoing reserve development.

Hislop Mine ("Hislop")
Hislop produced 5,899 ounces of gold in Q2 2012. The head grade averaged 2.21 g/t Au, which was substantially higher than the Company's expectations. Mining is progressing as planned and is completed to the final pit perimeter in all areas. Recovery for Hislop during Q2 2012 averaged 85.6%, slightly below expectations.

Q2 2012 Earnings Call
SAS is scheduled to release its Q2 2012 results on Friday, August 10, 2012, after market close. A conference call and webcast is scheduled for the morning of Monday August 13, 2012. For further information, please see the Company's website at www.sasgoldmines.com.

Qualified Person
Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's COO and Vice President of Operations. Mr. Middlemiss is a qualified person as defined by NI 43-101, and has reviewed and approved this news release.

About SAS
SAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive land package in the Timmins mining district, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada. SAS is focussed on developing its assets in the Timmins Camp, with three producing mines and aggressive exploration activities across 120km of land straddling the Porcupine-Destor Fault Zone.

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") under applicable securities laws, concerning the Company's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward-looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results, including in respect of achieving the Company's gold production levels in 2012; the improvement in throughput at the Holt Mine, and the opening of new mining areas at the Holloway Mine, and the effect thereof..

This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, the level and volatility of the price of gold, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based and general business and economic conditions.  Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information. SAS does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. A further description of the risks and uncertainties facing the Company may also be found in the Company's Annual Information Form available on SEDAR at www.sedar.com.

 

SOURCE St Andrew Goldfields Ltd.

For further information:

Please contact:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com

Suzette N Ramcharan
Manager, Investor Relations
Email: sramcharan@sasgoldmines.com

Jacques Perron
President & CEO
Email:jperron@sasgoldmines.com

Ben Au
CFO, VP Finance & Administration
Email:bau@sasgoldmines.com

Profil de l'entreprise

St Andrew Goldfields Ltd.

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